Sears CEO Leaves the Company as it Declares Bankruptcy

Sears did not have a good day of news on Monday.

The struggling retailer announced that it has filed for bankruptcy and that its CEO Eddie Lampert had stepped down in a move that is effective immediately. He will remain on board as chairman however.

Lampert has a controlling ownership stake in the company at 31% while his hedge fund ESL invetments own around 19%.

With the bankruptcy, Sears will be closing 142 stores toward the end of the year and liquidation sales are expected to begin soon.

Sears said that ESL is negotiating a $300 million debtor-in-possession loan to support it through its bankruptcy. The company has also secured a $300 million loan from from investment banks.

“ESL invested time and money in Sears because we believe the company has a future,” ESL and Lampert said optimistically in a statement.

Disclaimer: We have no position in Sears Holdings Corp. (NASDAQ: SHLD) and have not been compensated for this article.